Air Wisconsin and American Airlines are set to part ways this spring, ending an on-again, off-again regional partnership that began in its most recent form in March 2023.
According to a press release issued by Air Wisconsin last week, the capacity purchase agreement will conclude by the end of April, with the airline ceasing CRJ-200 operations for American on 3 April.
While the announcement comes as a surprise to some, Air Wisconsin describes the move as a “strategic shift” toward new opportunities, including federally subsidized Essential Air Service (EAS) routes and charter operations.
Founded in 1965, the Appleton, Wisconsin (ATW)-based carrier has long been a trailblazer in regional aviation. Air Wisconsin pioneered the concept of code sharing in the 1980s, forging partnerships with major carriers like United Airlines and later AirTran Airways. In its heyday, it was the largest regional airline in the U.S. and even invested in US Airways during its bankruptcy in exchange for a long-term operational contract. Over the years, Air Wisconsin has transitioned through partnerships with United, US Airways, and most recently, American Airlines.
Its current partnership with American Airlines began with a five-year contract signed in 2022, enabling Air Wisconsin to operate up to 60 CRJ-200s for the American Eagle brand. However, American’s decision to end the agreement after just one year leaves Air Wisconsin without a mainline carrier partner, raising questions about the airline’s future.
Air Wisconsin operates a fleet of 62 Bombardier CRJ-200s, though only 38 of these 50-seat regional jets are active. With an average age of over 22 years, the fleet is based primarily out of Chicago O’Hare (ORD). As the airline exits its role as American’s only CRJ-200 operator, the focus will shift to utilizing these aircraft in EAS and charter operations.
American Eagle previously discontinued CRJ-200 operations during the pandemic. However, the capacity purchase agreement with Air Wisconsin resurrected the type for American flyers once again in 2023.
While the CRJ-200 might be on its way out for American Eagle, the carrier still operates the larger CRJ-700 and CRJ-900, as well as the Embraer ERJ-145.
The CRJ-200’s small size and operational flexibility make it well-suited for underserved markets, and Air Wisconsin appears poised to capitalize on these strengths. In the press release, CEO Robert Binns expressed optimism.
“This strategic shift underscores our adaptability and commitment to delivering reliable, customized air travel solutions where they are most needed,” Binns said. “As we diversify into EAS and grow our charter operations, we remain committed to delivering safe, efficient, and quality service to every community and customer we serve.”
At least somebody is optimistic about the “Nickelback of the Skies.”
Air Wisconsin currently operates just one EAS route: the twice-daily route between Chicago (ORD) and Iowa’s Waterloo Regional Airport (ALO). However, American Airlines controls the route, which will not transfer after the partnership ends. This means Air Wisconsin has no EAS contracts of its own.
As such, and to diversify its revenue streams, the airline has applied for EAS contracts to serve Quincy, Illinois (UIN), and Burlington, Iowa (BRL). These small, federally subsidized markets could provide a lifeline for Air Wisconsin, though competition for EAS contracts remains fierce.
Charter operations also represent a promising avenue for growth. With recent changes in collegiate athletic conferences increasing travel distances for sports teams, Air Wisconsin is positioning itself as a go-to provider for NCAA charters. The CRJ-200’s capacity and range are well-suited to these needs, and the airline’s debt-free status offers financial flexibility to pursue new opportunities.
Despite its ambitious plans, Air Wisconsin faces an uncertain future. Without a single EAS contract currently in place and no mainline partner, the airline will need to move quickly to secure new business.
In last week’s press release, Binns announced that the carrier has recently “retired all remaining debt on its aircraft,” allowing it to “embark on this new direction with enhanced financial flexibility.” The retirement of its aircraft debt is indeed a positive step, but the fate of its 62 CRJ-200s remains a question mark.
For an airline with such a storied past, this moment represents a critical juncture. Will Air Wisconsin succeed in carving out a niche in the EAS and charter markets? Can it sustain operations without a mainline carrier? Only time will tell.
As one chapter closes, Air Wisconsin embarks on a new journey. For now, aviation enthusiasts and industry insiders alike will be watching closely to see how this resilient regional carrier adapts to its next challenge.
Credit: avgeekery.com
